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LA Unified School District Seeks to Shed Build America Bonds.
- Source :
- Bloomberg.com; 4/19/2024, pN.PAG-N.PAG, 1p
- Publication Year :
- 2024
-
Abstract
- The Los Angeles Unified School District (LAUSD) is planning to sell $3 billion of general obligation refunding bonds in order to replace $2.65 billion of taxable Build America Bonds with lower-yielding, tax-exempt securities. This bond sale comes as the district aims to align its spending with declining enrollment. Moody's Ratings recently raised LAUSD's issuer credit rating due to its conservative budgeting practices and efforts to reduce spending in anticipation of future reductions in federal pandemic aid and enrollment. The sale is part of a larger trend of refunding taxable debt with tax-exempt securities. The district has implemented a hiring freeze and is considering school closures or consolidations. Moody's also cited the district's improved general fund balance and efficient operation of individual schools as reasons for the credit rating upgrade. California's high tax rates create a strong demand for tax-exempt debt among wealthy investors. [Extracted from the article]
Details
- Language :
- English
- Database :
- Complementary Index
- Journal :
- Bloomberg.com
- Publication Type :
- Periodical
- Accession number :
- 176722895